trigroupadmin No Comments

Businesses aren’t out of the woods yet in terms of financial security. Corporate insolvencies are down, but this might only be storing up problems for later. If your business is struggling financially, what should you do to try and keep the company running?

Insolvency Levels Down

The latest figures from the Insolvency Service show that there was a 25% reduction in the number of corporate insolvencies during the second quarter of 2013 compared with the previous period. However, levels of corporate liquidations increased by 10.5% during the same quarter: compulsory liquidations were down 6.6%, but creditors’ voluntary liquidations rose by 17.3%.

Many experts see the decline in insolvency rates as a short-term recovery. Lower interest rates are enabling many struggling businesses to stay afloat, but without the ability to grow or invest. As the economy starts to recover, those companies who haven’t got the funds to grow could be in serious trouble. We could then see a sharp increase in the number of businesses requiring insolvency advice, or facing liquidation.

How to Help Your Business

If your business is struggling financially, then it’s vital that you seek insolvency advice as soon as possible. By getting the right help and support early on, your business will be in a better position to recover. If you simply ignore the problems and hope they’ll go away, things could get much worse and you could end up being forced to close the business.

An insolvency practitioner will work closely with the directors of the business to try to resolve the situation in a way which keeps the company running. If you have cash-flow issues they might look at ways of refinancing, selling assets or debt restructuring. However, if the situation is too serious and liquidation is the only option, they’ll help the process run as smoothly as possible.

You need to remember that seeking help for financial problems doesn’t have to mean the end of the company. Everyone needs help at some point and it shouldn’t be a sign of weakness, but rather as a desire to maintain the business.

At tri group we’re experts in providing insolvency advice to businesses across a range of industries. Our experienced advisers can provide support for your business if you’re suffering financial problems, including business restructuring and company insolvency proceedings.